Dirk Coetzer guides Luxembourg-registered Firminy Equity Fund and ICON Investments Fund, and pursues investment strategies that reflect overarching economic trends. Dirk Coetzer maintains a close watch on the latest developments in the global markets, including the effects of the Brexit vote on capital flow and investment opportunities.
Since the decision of UK voters to leave the European Union, analysts have struggled to assess the ultimate impact of the Brexit. This reflects the way in which British economic and trade interests are intricately bound up with those of Europe. As estimated by the Institute for Fiscal Studies, the permanent cost of leaving the European single-market for goods and services will be 4 percent of Britain’s GDP, or approximately £3,000 for each household, on average.
This will significantly outweigh the costs of staying in a single market, with net contributions to the European Union budget costing British taxpayers £9 billion annually. Particularly affecting UK exporters is the potential resurgence of non-tariff barriers, such as licensing, which go beyond those addressed by free trade agreements. This may make British goods significantly more expensive to continental European consumers.